Sales Commission: How to Develop an Effective Sales Compensation Plan
Posted on March 31, 2008
by Alan Rigg
The most common question I hear concerning sales compensation goes something like this: “What commission percentage should I pay for _____________?”
I’m sorry, but there is just isn’t a “standard” answer to this question! Why? Because there are a huge number of variables that impact commission percentage calculations. Here are just some of the variables:
- Products or services sold
- Target markets
- Target geographies
- Target contacts (C-level, department manager, purchasing, etc.)
- Sales environment (company office, home office, etc.)
- Sales approach (telephone, in-person, etc.)
- Company profitability
- Individual product or service profitability
Despite the fact that there is no simple answer to the “What commission percentage should I pay?” question, determining the right commission percentage is not rocket science, either. There ARE specific questions you can answer that will lead you to the right commission percentage(s) for your company. Read the rest of this entry »
The Republishing of Sales Articles
Posted on March 27, 2008
So I receive an e-zine newsletter pretty frequently regarding selling. In fact I receive several that I peruse when I have a few free minutes. Interestingly enough, I was thinking about publishing a few of the articles on sales, and one of the publishers, who’s newsletter I receive gives reprint/republish rights to their articles. So, from time to time I will be republishing articles that appeal to me that I think may be of interest to the SMB owner, manager, or sales person.
Oh, and I still plan on writing some of my own. Keep on the lookout.
Retail Sales People, Please Learn Sales 101!
Posted on March 3, 2008
So I was shopping this weekend with my fiancee. Not surprising news. However, I have to rant about retail sales people… This is one of my pet peeves. Let me take a step back though, and say that we all know the economy is in the toilet, right? That retail sales are down, right? Right.
This is exactly how I feel about the Microsoft proposed Yahoo Take Over.
Posted on February 5, 2008
I came across this in a Google alert tonight, ironically enough… It is an article written by Jonathan Weber, former founder and editor of the Industry Standard. He articulates almost exactly how I feel about a proposed merger or buyout by Microsoft. Check it out here: http://technology.timesonline.co.uk/tol/news/tech_and_web/the_web/article3307589.ece.
Infopreneurship for small business, Part Three
Posted on January 15, 2008
